Friends Fiduciary Joins Investor Coalition Asking G-7 Governments To Commit To Long-Term Emissions Reduction Goals In The Upcoming Paris Global Climate Agreement

Friends Fiduciary has joined a coalition representing more than $12 trillion in assets under management, asking G-7 finance ministers to specify long-term emissions reduction goals in the global climate agreement to be signed in Paris in December.  The request was sent to the finance ministers of the G-7 countries, as they will play a crucial role in the lead up to the Paris summit in December 2015.  This is the first time a global coalition of investors has called for long-term emissions reduction to be part of the accord. The investors, including Friends Fiduciary, maintain that “climate change is one of the biggest systemic risks” to investor capital and that delaying action will result in more stringent policies being required later. The decision to reduce emissions over the long term is a critical first step in limiting the global temperature increases to the targeted 2°C. This call to action by investors included a request for short to medium-term goals, noting that each nation’s finance minister must agree to his or her nation’s goals and ensure a just transition for individuals and communities. A strong agreement in Paris will set a clear pathway for nations and businesses towards a low carbon future.  This in turn will “serve to reduce policy risk, incentivize R&D, facilitate the deployment of new technologies and ultimately create new jobs.”  Friends Fiduciary believes that an ambitious agreement coming out of Paris will be an important and necessary step towards mitigating climate change. Please see attached letter.